Japan service sector activity slows from 5-month high, PMI shows
SPY•Japan’s services PMI eased to 51.3 in September from 52.5 in August, as business activity and new orders grew more slowly. The broader composite PMI fell to 52.3 from 53.5.
1. Services growth eases
Japan’s service sector expanded at a slower pace in September, with earthquake disruption also dampening demand. The final S&P Global Services PMI fell to 51.3 from August’s five-month high of 52.5, below a flash reading of 51.6; readings above 50 indicate growth.
2. Orders and employment
New orders increased for a 27th consecutive month, though more slowly than in August, while new export business fell again. Employment rose for a 13th straight month and at its fastest pace since February, and backlogs of work recorded their strongest increase in seven months.
3. Costs and broader activity
Input cost inflation eased to a six-month low but remained elevated by historical standards. The composite PMI, covering manufacturing and services, fell to 52.3 from 53.5, its weakest reading since May.
